The United States has announced more sanctions against Russia due to the invasion occurring in Ukraine. One of the main sanctions that will affect corporations and foreign investors is the ban on oil, energy, and wheat import from Russia. Today, the United States is among the first few countries taking such positions.
These are some of the issues that corporations and investors may face globally due to international conflicts.
- Businesses may see a rise in cost in electricity and gas pumps or fuel energy.
- Businesses and Investors will feel reluctant from investing in new projects in the global market due the unstable political environment that the conflict has created.
- Government misappropriation may occur more often than expected.
- Joint Ventures and Global Partners may start to terminate their operating agreement in the global market.
- A market shift from industry will occur.
Some of these issues can be fix by implementing an Arbitration clause in your operating agreement when dealing with foreign transactions or bilateral investments. Arbitration clauses help in protecting parties from unfair judgements or procedures when disputes arise, in foreign transactions or in a bilateral investment. It is also imperative that investors and corporations review their operating agreements on an ongoing basis in order to follow current political trends. It is expected that more and more government misappropriation will occur within this year due to the ongoing conflict. It is also important to note that most countries are part the New York Convention UNCITRAL to which arbitrational tribunals can find jurisdiction to hear their issues and to enforce their awards.
At Cueto Law Group, we advise international clients and governments on how to mitigate their injury and represents them globally within the International Tribunals and International Court of Justice. We are experts in International Law, and we dedicate our passion and work toward our client to get the best results within the Global Arena.